Electric vehicles are still generally unprofitable due to the high costs associated with making batteries, which remain the priciest component of an EV. Tesla's first profitable year was not until 2020. Last month, General Motors said it's finally starting to make some money with electric cars. Ford's Model e division, responsible for zero-emission vehicles, had a difficult 2024 and is bracing for another tough year.
While detailing its financial results for 2024, the Blue Oval admitted it incurred a full-year EBIT (earnings before interest and taxes) loss of $5.1 billion. Things could be even worse this year, as the Dearborn automaker predicts Model e will report a loss of $5 billion to $5.5 billion. As bad as this sounds, Ford remains optimistic since some money goes into EV investments. In addition, it reported $1.4 billion in "cost improvements" last year for the Model e branch.
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